Builders Built More Homes on Smaller, Cheaper Lots

Zillow Real Estate Research collected Census data on the relationship between lot size and structure size, and between lot values and sales values.

“Throughout the recovery, newly constructed homes have occupied an increasing share of the lot on which they’re built – the result of more construction in denser, more urban communities,” the report says.

But as larger homes continue to be built on smaller lots, there has been a stabilizing in the decline of lot values relative to sale values, which according to Zillow, is “yet another signal that developers are indeed starting to expand their focus away from the luxury segment.”